Monthly Metal Review

Overview

Markets have been pulled and pushed by consider-able headwinds, tailwinds and cross currents in May, that have seen government bond yields and oil price both rise and fall, while the dollar has moved from strength to strength. In addition, the markets have had to put up with further mixed messages from President Donald Trump on trade and sanctions, and benign economic data. The 10-year US treasuries yield climbed to 3.128 percent at one stage, which took it above the dividend yield on the S&P 500, the dollar index has been as high as 95.03 and oil prices rose above $80 per barrel. These were enough to cap the upside on most commodity prices, although where supply has been disrupted, as in the case of oil and lead, higher prices have been seen. The stronger dollar, higher oil prices and strong yields have not helped market confidence, but judging by the retreat in gold prices, nei-ther did they cause too much concern. World stocks fell at mid-month on soft Chinese economic data and slow progress, later rectified, in U.S.-China trade talks, whilst a rise in U.S. borrowing costs supported the dollar. Germany’s first-quarter economic growth came in lower than expected. China reported weaker-than-expected April investment and retail sales and a home-sales drop. The 10-year U.S. bond yield rose above the key 3-percent level in mid-May, sending borrowing costs higher in some other countries and supporting the dollar. The situation deteriorated further towards the end of May, with uncertainty in Europe once again rising as Italy has failed to form a government. This could lead to fresh elections and at worse another EU crisis. Other situations that have escalated include uncertainty on whether the US/North Korea summit will go ahead as US President Donald Trump called off the talks, although latest reports suggest they may be on again. The oil rally was driven by concerned about oil supply following US sanctions against Iran and as Venezuela’s oil production and exports have slumped. OPEC and Russia have as-sured the market they can increase output and as a result Brent crude oil prices have fallen back to $75.50 per barrel. The uncertainty over Italy has led to another bout of risk-off that has so far mainly hit equities and periph-eral European debt, with money moving into the safe-havens of US and German bonds, the dollar and the yen, but gold has largely been left off the safe-haven list, which may be because investors have become more yield conscious again. The risk-off in broader markets has not yet flowed into the base metals – most have been trading sideways in May, the exceptions being lead and nickel where prices have risen. President Donald Trump actions against trade im-balances at first sight do seem to have poured cold water on the markets bullish outlook, but perhaps he is taking this opportunity now as this is the first time in ten years that the global economy has been robust enough to with-stand some trade adjustments. If these can be carried out without triggering trade wars that could be good for long-er growth and trade.

Daily Prices

May 2018

Copper
Date(Fix.) ($/MT)
Average 6821.76
31-05-2018 6825
30-05-2018 6810
29-05-2018 6841.5
25-05-2018 6886
24-05-2018 6835
23-05-2018 6800
22-05-2018 6931.5
21-05-2018 6861
18-05-2018 6783.5
17-05-2018 6838
16-05-2018 6773.5
15-05-2018 6822.5
14-05-2018 6828
11-05-2018 6869
10-05-2018 6862
09-05-2018 6786
08-05-2018 6722
04-05-2018 6783
03-05-2018 6837
02-05-2018 6785
01-05-2018 6777.5
Silver
Date(Fix.) ($/OZ)
Average 16.47
31-05-2018 16.55
30-05-2018 16.37
29-05-2018 16.475
25-05-2018 16.67
24-05-2018 16.51
23-05-2018 16.53
22-05-2018 16.58
21-05-2018 16.34
18-05-2018 16.39
17-05-2018 16.385
16-05-2018 16.255
15-05-2018 16.41
14-05-2018 16.645
11-05-2018 16.76
10-05-2018 16.6
09-05-2018 16.55
08-05-2018 16.445
04-05-2018 16.415
03-05-2018 16.47
02-05-2018 16.35
01-05-2018 16.25
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1303.61
31-05-2018 1303.5
30-05-2018 1298.6
29-05-2018 1302.05
25-05-2018 1303.95
24-05-2018 1296.35
23-05-2018 1294
22-05-2018 1293.9
21-05-2018 1285.85
18-05-2018 1287.2
17-05-2018 1288.85
16-05-2018 1291.75
15-05-2018 1310.05
14-05-2018 1320.7
11-05-2018 1324.8
10-05-2018 1314.8
09-05-2018 1306.85
08-05-2018 1310.05
04-05-2018 1309.35
03-05-2018 1313.3
02-05-2018 1310.75
01-05-2018 1309.2
Date(Fix.) ($/OZ)
Average 1303.32
31-05-2018 1304.425
30-05-2018 1299.65
29-05-2018 1298.775
25-05-2018 1303.725
24-05-2018 1300.6
23-05-2018 1291.5
22-05-2018 1293.475
21-05-2018 1287.1
18-05-2018 1287.75
17-05-2018 1289.175
16-05-2018 1291.5
15-05-2018 1302.525
14-05-2018 1320.275
11-05-2018 1324.575
10-05-2018 1316.8
09-05-2018 1310.35
08-05-2018 1308.325
04-05-2018 1309.375
03-05-2018 1314.175
02-05-2018 1307.475
01-05-2018 1308.15
Date(Fix.) ($/OZ)
Average 1303.03
31-05-2018 1305.35
30-05-2018 1300.7
29-05-2018 1295.5
25-05-2018 1303.5
24-05-2018 1304.85
23-05-2018 1289
22-05-2018 1293.05
21-05-2018 1288.35
18-05-2018 1288.3
17-05-2018 1289.5
16-05-2018 1291.25
15-05-2018 1295
14-05-2018 1319.85
11-05-2018 1324.35
10-05-2018 1318.8
09-05-2018 1313.85
08-05-2018 1306.6
04-05-2018 1309.4
03-05-2018 1315.05
02-05-2018 1304.2
01-05-2018 1307.1
Lead
Date(Fix.) ($/MT)
Average 2363.88
31-05-2018 2445.5
30-05-2018 2421
29-05-2018 2423
25-05-2018 2465
24-05-2018 2502
23-05-2018 2441
22-05-2018 2448
21-05-2018 2360
18-05-2018 2330.5
17-05-2018 2325
16-05-2018 2321
15-05-2018 2346
14-05-2018 2380
11-05-2018 2332
10-05-2018 2300
09-05-2018 2291
08-05-2018 2301.5
04-05-2018 2274
03-05-2018 2279
02-05-2018 2320
01-05-2018 2336
Zinc
Date(Fix.) ($/MT)
Average 3059.48
31-05-2018 3100
30-05-2018 3107
29-05-2018 3080
25-05-2018 3048
24-05-2018 3022
23-05-2018 3006
22-05-2018 3038.5
21-05-2018 3098
18-05-2018 3080.5
17-05-2018 3053
16-05-2018 3055
15-05-2018 3060.5
14-05-2018 3020.5
11-05-2018 3080
10-05-2018 3072
09-05-2018 3100
08-05-2018 3066
04-05-2018 2968
03-05-2018 3028
02-05-2018 3065.5
01-05-2018 3100.5
Tin
Date(Fix.) ($/MT)
Average 20899.76
31-05-2018 20800
30-05-2018 20525
29-05-2018 20675
25-05-2018 20450
24-05-2018 20450
23-05-2018 20650
22-05-2018 20725
21-05-2018 20650
18-05-2018 20675
17-05-2018 20660
16-05-2018 20895
15-05-2018 21025
14-05-2018 21025
11-05-2018 20950
10-05-2018 20800
09-05-2018 21200
08-05-2018 21295
04-05-2018 21375
03-05-2018 21400
02-05-2018 21270
01-05-2018 21400
Nickel
Date(Fix.) ($/MT)
Average 14356.43
31-05-2018 15200
30-05-2018 14870
29-05-2018 14880
25-05-2018 14840
24-05-2018 14525
23-05-2018 14510
22-05-2018 14700
21-05-2018 14615
18-05-2018 14750
17-05-2018 14580
16-05-2018 14410
15-05-2018 14490
14-05-2018 14320
11-05-2018 13910
10-05-2018 13810
09-05-2018 13790
08-05-2018 13940
04-05-2018 13835
03-05-2018 13985
02-05-2018 13915
01-05-2018 13610
Cobalt
Date(Fix.) ($/MT)
Average 90440.48
31-05-2018 89000
30-05-2018 90750
29-05-2018 91000
25-05-2018 91000
24-05-2018 91000
23-05-2018 91500
22-05-2018 92000
21-05-2018 91000
18-05-2018 91000
17-05-2018 91000
16-05-2018 91000
15-05-2018 91000
14-05-2018 91500
11-05-2018 90250
10-05-2018 89500
09-05-2018 89000
08-05-2018 89000
04-05-2018 89000
03-05-2018 90500
02-05-2018 90500
01-05-2018 88750